TOP STORIES:
Wheat Falls as Momentum Doesn't Last
Wheat for September delivery fell 0.6% to $5.29 1/2 a bushel on the Chicago Board of Trade Wednesday, with grain traders unenthused about U.S. wheat's demand prospects going forward. Corn for December delivery rose 0.2% to $3.26 3/4 a bushel. Soybeans for November delivery rose 0.3% to $8.88 1/4 a bushel.
The uptick in wheat futures Wednesday didn't hold, with the most-active contract giving back some of those gains in trading Thursday. "Wheat charts took out yesterday's high with all momentum down, " said Charlie Sernatinger of ED&F Man Capital. News was light for the day, with many grains traders still skeptical of strong export demand propping up the U.S. market despite a strong export sales report from the USDA this morning.
Kellogg Reports Higher 2Q Profit; Demand for Cereal, Frozen Food Rises During Pandemic
Kellogg Co. reaped gains from the coronavirus-inspired cooking-at-home trend, reporting heightened demand for a number of its products and raising its financial forecast for the year.
The maker of Cheez-It snacks, cereals like Special K, Morningstar Farms meatless food and other packaged items on Thursday said it now expects comparable sales in 2020 to rise about 5% year over year, up from a previous forecast that anticipated no more than a 2% gain.
Kraft Heinz Earnings Hit by Write-Downs -- 2nd Update
Kraft Heinz Co. wrote down the value of Oscar Mayer, Maxwell House and several other of its well-known brands, reflecting the challenges for the food maker despite strong sales in recent months amid the pandemic.
Kraft Heinz on Thursday recorded $2.9 billion in impairment charges, which resulted in the company swinging to a loss in the second quarter. The hit comes after Kraft Heinz last year reduced the value of its assets by nearly $17 billion. It said at the time that consumers had gravitated toward niche brands often viewed as fresher, healthier, or more innovative.
STORIES OF INTEREST:
USDA Announces New 1.94MMT Sales of Soybeans to China -- Market Talk
09:37 ET - On top of the nearly 2 million metric tons of soybean exports confirmed sold to China by the USDA in its weekly export sales report Thursday, the USDA has also confirmed a new flash sale of 1.94 million metric tons of soybeans to China, for delivery in the 2020/21 marketing year. While traders are encouraged by the new wave of sales activity, that enthusiasm may not translate into upward movement of the CBOT soybean contract Thursday. "Beans had a monster week of export sales, but those numbers are often already priced in, which explains the lack of reaction," says Doug Bergman of RCM Alternatives. Soybean futures fell 0.2% overnight. (kirk.maltais@wsj.com; @kirkmaltais)
China's Corn-Market Pop Could Lift U.S. Farmers
Corn prices in China are soaring, which could be good news for American farmers.
As China's formerly bloated stockpiles shrink, prices have climbed to a five-year high. Since January, front-month corn futures on the Dalian Commodity Exchange have risen 27% to about 2,306 yuan ($329) a metric ton, a level last seen in the summer of 2015.
THE MARKETS:
Hogs Finish on the Downside -- Market Talk
16:04 ET - Hog futures trading on the CME finished the day 3% lower, dropping to 48.325 cents per pound. That's their lowest close since June 8, suggesting that pressure from the large hog slaughters being performed by meatpacking plants is being felt. Live cattle futures, on the other hand, have maintained a strong performance in July. The most-active contract finished trading today up 0.7% to $1.0675 per pound. Since the start of July, cattle futures have moved up 6.2%. (kirk.maltais@wsj.com; @kirkmaltais)
